Which of the Following Statements Is CORRECT

question 17

Multiple Choice

Which of the following statements is CORRECT?

• A) One advantage of a zero coupon Treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sold.
• B) Long-term bonds have less price risk but more reinvestment risk than short-term bonds.
• C) If interest rates increase,all bond prices will increase,but the increase will be greater for bonds that have less price risk.
• D) Relative to a coupon-bearing bond with the same maturity,a zero coupon bond has more price risk but less reinvestment risk.
• E) Long-term bonds have less price risk and also less reinvestment risk than short-term bonds.

Evaluate the role of volunteer emotions and other subjective factors in organizational decisions such as mergers.

Understand the concept of locus of control and its implications on behavior and achievement.

Identify different theories and scales used to measure personality traits and motivation, including Rotter's locus of control and the TAT for achievement motivation.

Explain the difference between intrinsic and extrinsic motivators and their effects on individual performance.

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Definitions:

Export Markets

Overseas markets where goods and services produced in one country are sold.

Supply and Demand Analysis

An economic model that determines the price of a product in a market by evaluating the balance between the quantity of a good or service available and the desire (or demand) for that good or service.

Equilibrium Price

is the price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Exports and Imports

The totality of goods and services sent out to other countries (exports) and brought into a country (imports) from abroad.